Government on divesting spree

The Union Cabinet has decided to divest 10% of the government’s stake in Nalco and Neyveli Lignite Corporation (NLC), despite the Left opposing the decision (as always). The revenues collected from the sales of stakes through the book building process would amount to Rs.26.28 billion. This divestment follows the central government’s decision to sell off 5% of their stake in Power Finance Corporation (PFC) and their 15% stake in National Mineral Development Corporation (NMDC) during early 2006. With those sales the government was expected to collect Rs.35 billion, and the merchant bankers, who will look into the issues, have already been appointed. We surely give government the credit for bold move that others could not make.

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Source:- IIPM Editorial, 2006

Editor:- Prof. Arindam Chaudhuri

THE POWER OF DREAMS...

“The Indian market continues to grow. Our plan is to increase sales, centering on such highly regarded models as the Jazz and Fit,” states Takeo Fukui, global CEO, Honda. While entering the Indian market in 1997 with the Honda City, Honda was well aware of the fact that ‘Honda’, in India was considered a prestigious brand, and the premium segment seemed to fit in perfectly with Honda’s ‘testing waters’ strategy as Honda did not want to enter the volume-driven compact segment. In 2001, the company launched the then relatively unsuccessful Accord. But with appropriate market feedback, the subsequent launch of the updated version changed all that; and Accord became the segment leader. Even in 2003, despite various analysts shouting hoarse against it, Honda decided to redesign the Honda City (its original offering) and succeeded. The Accord experience helped in the smooth sailing for its SUV offering, the Honda CR-V, which instantly obliterated competition like Chevrolet Forester and Suzuki Grand Vitara XL7; India has surely been a pleasant feeding ground. But
will it really remain that way?

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Source:- IIPM Editorial, 2006, Editor:- Prof. Arindam Chaudhuri

“Reign of Terror”

And then, Patterson, with almost foolhardy courage, decided to bait himself to abrogate the murderous “reign of terror”. At dawn, Patterson started building a machan. When darkness fell, Patterson was sitting atop the machan, armed and alert. After hours of waiting in anticipation, I heard the first roar of the lion. “The roar was such that the very earth would tremble; where was a man who didn’t feel afraid?” Roshan Mistari, Tsavo, 1898.

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Source:- IIPM Editorial, 2006 Editor:- Prof. Arindam Chaudhuri

WITH A NEW ZEAL

Shifting focus from the socialistic pattern of economy to more market oriented one was the biggest news in the year 1991. Globalization, liberalization and free economy are a few words which started their usage in India after Manmohan Singh, as the finance minister, opened up the economy by lowering easing of many respective practices. Being the signatory of the IMF and dependent on its aids, India had to open up its economy by reducing tariff rates. The is opened the doors for foreign players to invest in India and also allowed foreign technology to be used in the Indian industry. The e present growth rate of more than 7% is the result of such bold decisions.

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Source:- IIPM Editorial, 2006

Bofors booms

The death of innocence. One fine day, Rajiv Gandhi, seen as the new hope, was accused of receiving kickbacks worth Rs.64 crore in the buying of Swiss gun Bofors. V. P. Singh, once Rajiv’s finance minister, fell out with Rajiv and led the Bofors campaign. The amount is loose change today, but when Singh went around telling Indians that Rajiv was dirty, it shook the country.

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Source:- IIPM Editorial, 2006

PLATFORMS ARE DIFFERENT

Possibilities for forming new growth platforms arise when forces of change – such as new or converging technologies or changing regulatory environments – create the opportunity to satisfy some unmet customer need. When a corporation identifies a potential NGP, it can assemble the right portfolio of capabilities, business processes, systems and assets that are required to deliver products and services that satisfy these customer needs.

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Source:- IIPM Editorial, 2006